28 March 2014

Financing The Fixer Upper In Tooele

Looking at financing the fixer upper in Tooele?

Now that home prices are moving back up again, interest rates are still at basement level prices, and there are over 100 homes for sale in Tooele County under $150,000, owning a home looks like a pretty good deal.  Tooele home buyers  are thinking of "financing the fixer upper in Tooele.

That kind of home loan is tough to get for a lot of reasons.

I found an artcle @ RISMedia last week that will give you an overview of some of the problems. Hope this gives you an understanding of what lies ahead if you are thinking of buying & financing a fixer upper in Tooele UT.

Q: How Can I Finance Work Needed on a Fixer-Upper?


A: According to the Millennial Housing Commission, few lenders are willing to administer home improvement loans. Most prefer to make home equity loans or unsecured consumer loans because they are easier to manage. Home improvement loans usually require inspections and irregular draws on the loan amount as work is completed, which requires regional or national lenders to find local partners to provide oversight.

  • Financing repairs and improvements with home equity is okay for most homeowners
  • Financing fixer uppers in Tooele UT is difficult for many first-time buyers. They have lower-incomes, smaller savings, and have made lower down payments on their homes than first-time buyers a decade ago. So they have little equity to borrow against. Unfortunately,
  • Often it is the lower cost older homes purchased by first-time buyers that need the most work.
  • Unless you have a cash reserve, you will have to shop around for the best borrowing terms.

In addition to the options listed above, you can ask relatives for a loan. Borrow against your whole life insurance policy. Refinance your existing mortgage and take out cash. Get a second mortgage. Contact the government about home improvement programs. And – as a last resort – borrow from a finance agency, which generally charge high rates. 

Reprinted with permission from RISMedia. ©2014. All rights reserved. 

So, these are some of the problems you face when buying a home that is going to require fixing it up before you feel comfortable living there. But how about this?

Paying for the Remodeling with a 203K loan:

There is a home loan product, sponsored by  FHA that allows home buyers to borrow enough money when they buy a home to complete all repairs before they even move in.

Give me a call and ask me about financing the fixer upper in Tooele UT with an FHA 203K loan. This loan is a primary HUD loan program designed to provide financing to rehab, refurbish or repair single family homes. It is a great loan for expanding homeownership opportunities, and a great tool to help revitalizing communities and neighborhoods in Tooele County.

Every lender is not prepared to provide 203k loans for Tooele buyers, and not all agents know how to purchase a fixer upper home and roll the refurbishing costs into the original mortgage.

I know how to buy fixer uppers and include the fix up costs in the loan, and i know what lenders can do those loans.

So...... If you are looking at financing a fixer upper in Tooele UT, call me Berna @ 435-840-5029. TODAY.

 

 


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